a) Calculate working capital, current ratio, and acid-test ratio for Tibbets Company as of September 30, 2008.
b) Summarized below are transactions/events that took place during the fiscal year ended September 30,2009. Indicate the effect of each item on Tibbets Company working capital, current ratio, and acid-test ratio. Use + for increase, - for decrease, and (NE) for no effect.
Working Capital Current Ratio Acid-Test Ratio
1) Credit sales for the year amounted to $240,000.
The cost of goods sold was $156,000

2) Collected accounts receivable, $252,000
3) Purchased inventory on account, $1680,00
4) Issued 250 shares of common stock for $36 a
share
5) Wrote off $7,000 for uncollectible accounts using the allowance for bad debts
6) Declared and paid cash dividend, $20,000
7) Sold marketable securities costing $26,000 for
$31,000 in cash
8) Recorded insurance expense for the year, $12,000
The premium for the policy was paid in June
2008
9) Borrowed cash on a short-term bank loan,
$10,000
10) Repaid principal of $40,000 and interest of
$3,000 on a long-term bank loan